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Impact of Interest Rates on Stock Market Performance
Higher Interest Rates: Lead to increased borrowing costs, reducing corporate profits and lowering stock prices
Higher Interest Rates: Lead to increased borrowing costs, reducing corporate profits and lowering stock prices
Lower Interest Rates: Encourage investment in equities due to cheaper borrowing, boosting stock prices
Consumer Spending: Decreases with higher rates, affecting companies reliant on consumer demand, causing stock declines
Inflation Control: Rate hikes curb inflation but can slow economic growth, impacting stock markets negatively
Sector-Specific Effects: Rate-sensitive sectors like real estate and utilities often experience greater volatility